On 26 November, the National Assembly passed a new
Law on Investment (LOI) and a new Law on Enterprises (LOE).
These new laws will come into effect on 1
July 2015. While the enacted versions have not yet been released, based on the
last versions submitted to the National Assembly for voting which were made
available to us, key changes include:
• Companies are now allowed to engage in all
business activities which are not prohibited by law. Prohibited businesses are
listed in the LOI and include, for example, trading of wild and rare
animals, drug-related chemicals, etc. Under the LOE, it appears that
companies must still indicate their business activities in their
establishment application documents submitted to the licensing authorities,
but the business activities will not then be stated in the
companies’ investment certificates/business registration certificates.
• The LOI sets out 267 conditional sectors,
investment in which is subject to specific requirements. This should mean that other than in these 267
conditional sectors, there should not be any other conditions/operational licence requirements
imposed by other government authorities.
• The regulations with respect to company seals
have been relaxed. Companies can now decide the form, content and number of seals they may have. Seal
affixing shall only be required if the law specifically states this requirement.
• There are some changes to the licensing
procedures for establishing foreign invested companies or amending such companies’ investment certificates.
Existing foreign invested companies are allowed to continue to operate under their existing
investment certificates and are not required to re-register under the new LOE/LOI.
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